NVE Corporation (NASDAQ:NVEC) Q1 2025 Earnings Conference Call July 17, 2024 5:00 PM ET

Company Participants

Daniel Baker - President and Chief Executive Officer
Daniel Nelson - Controller and Principal Financial Officer

Conference Call Participants

Jeffrey Bernstein - Silverberg Bernstein Capital Management

Daniel Baker

Good afternoon and welcome to the NVE Corporation Conference Call for the Quarter Ended June 30th, 2024. I'm Dan Baker, NVE's President and CEO. I'm joined by Controller and Principal Financial Officer, Daniel Nelson.

This call is being webcast live by YouTube and Amazon Chime and its being recorded. A replay will be available through our website nve.com and our YouTube channel youtube.com/nvecorporation.

All participants are currently in listen-only mode. After our presentation, there will be a question-and-answer session. You will be able to ask a question by pressing star seven from the phone or clicking raise my hand from the Chime website or app.

After my opening comments, Daniel Nelson will present our financial results, I'll cover products and marketing, and we'll open the call to questions. We issued our press release with financial results and filed our quarterly report on Form 10-Q in the past hour following the close of market.

Links to the press release and 10-Q are available through the SEC's website, our website and on X formerly known as Twitter. Please refer to the Safe Harbor statement on your screen. Comments we may make that relate to future plans, events, financial results or performance are forward-looking statements that are subject to certain risks and uncertainties, including, among others, such factors as uncertainties related to the economic environments and the industries we serve and risks and uncertainties related to future sales and revenue, as well as the risk factors listed from time to time in our filings with the SEC, including our annual report on Form 10-K for the year ended March 31st, 2024.

Actual results could differ materially from the information provided and we undertake no obligation to update forward-looking statements we may make. We're pleased to report strong earnings and cash flow despite a challenging industry environment and a decrease in revenue from an exceptional year ago quarter.

Daniel Nelson will cover details of our financials. Daniel?

Daniel Nelson

Thanks, Dan. Total revenue for the quarter ended June 30th, 2024 decreased 23% compared to an exceptional prior year quarter.

The decrease was due to a 24% decrease in product sales, partially offset by a 28% increase in contract research and development revenue. The decrease in product sales was primarily due to the semiconductor industry downturn and high inventory levels primarily in the distributor channels.